By Giulia Petroni
Magna International Inc. (MGA) said Friday that sales for the third quarter fell and cut its 2019 outlook as a result of a labor strike at General Motors Co (GM).
The Canadian auto-parts maker swung to a loss of $233 million, or minus 75 cents a share, from a profit of $554 million, or $1.62 a share, the previous year. Adjusted earnings per share came in at $1.41.
Magna International said sales for the quarter decreased 3% to $9.32 billion from $9.62 billion in the year-earlier period. Adjusted for currency effects and acquisitions, sales increased 2%.
The company cut its full-year outlook mainly due to the impact of the GM strikes. It now expects total sales of between $38.7 billion and $39.8 billion from a previous estimate of between $38.9 billion and $41.1 billion. Net profit is expected to come between $1.8 billion and $1.9 billion from previously forecasted income of between $1.9 billion to $2.1 billion.
"We have made some adjustments to our outlook largely to reflect estimated lost volume related to the GM strike and higher launch costs," said Chief Financial Officer Vince Galifi.
Write to Giulia Petroni at email@example.com
(END) Dow Jones Newswires
November 08, 2019 07:06 ET (12:06 GMT)Copyright (c) 2019 Dow Jones & Company, Inc.